If the interest rate rises, then firms' investment spending:
A. falls.
B. also rises.
C. remains unchanged
D. reacts unpredictably.
Answer: A
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Walter is just learning how to ski. He states that every time he goes skiing, he has more fun than the last time. This means his marginal utility of skiing is
a. increasing b. constant c. decreasing d. zero e. negative
By tradition, Japanese employers cannot “lay off” workers. As a result they have goods that they cannot sell on the domestic market without driving down prices. To minimize losses, they sell goods such as steel and televisions in foreign markets at prices well below those in Japan. This is called
A. beggar my neighbor. B. helpfulism. C. strategic trade policy. D. dumping.
The price of a new textbook increases from $105 to $130 while the price of used copies of the textbook increases from $45 to $55. Other things equal, we would expect to observe
A. the quantity demanded of the used textbook to increase while the quantity demanded of the new textbook to fall. B. the quantity demanded of the used textbook to decrease and the quantity demanded of the new textbook to increase. C. the demand for the new textbook to increase while the demand for the used textbook to decrease. D. the quantity demanded of both to fall.
The consumer price index is the
A) cost of a market basket of goods and services typically consumed in the base year. B) cost of a market basket of goods and services typically consumed in the current period. C) average of the prices of the goods and services purchased by a typical urban family of four. D) average of the prices of new final goods and services produced in the economy over a period of time.